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Amazon wants to buy Indian e-commerce company Flipkart

Posted on Friday, May 04, 2018 by Judy Cobb

Amazon Reportedly Makes Offer on India-Based e-Commerce Flipkart

Walmart may end up spending anywhere between $8 billion and $12 billion to buy a majority stake in Flipkart, and is expected to increase its shareholding in the online retailer in a phased manner. "Sachin is most likely to leave and Binny will stay".

Tiger Global Management and Softbank could sell their stake to Walmart which is looking for 60 percent stake in the company.

Last year, SoftBank Vision Fund had pumped in an estimated Dollars 2.5 billion in Flipkart for about 20 per cent stake in the company.

Indian e-tailer major Flipkart completed another round of buyback of its shares valued at $350 million (Rs 2,275 crore) from its investors, according to its regulatory filing on Thursday. "Walmart has to make sure it buys off his shares, which is what is being worked out", the TOIreport quoted a source as saying.

United States retail giant Walmart Inc is in advanced talks with Flipkart to acquire a controlling stake of more than 51 percent in the Bengaluru-based e-commerce firm at a valuation of at least $18 billion, sources previously told Reuters. The deal may also see Flipkart founder and Executive Chairman Sachin Bansal exit the Bengaluru-based company, but nothing is clear on that matter as of now.

Amazon has made an offer to purchase approximately 60% of Indian e-commerce company Flipkart, according to CNBC.

The sources added that Sachin Bansal, founder of Flipkart, was in the U.S. last week to oversee final lap negotiations with Walmart. The deal between the two retail giants may value Flipkart at $20 billion, which suggests Sachin Bansal would get around of $1 billion on his exit. "There has been a shareholder realignment within Flipkart over the past few weeks, which has brought top level fissures into the open", said a source cited earlier in the report. Soft-Bank and Tiger Global are the two largest investors in Flipkart; Naspers, Accel Partners, DST Global are among the other key shareholders.

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